The short-run aggregate supply curve is upward sloping in part because increases in aggregate demand cause some firms to increase their price markups.
Answer the following statement true (T) or false (F)
True
While firms in many markets change production rather than price markups in responses to changes in demand, some firms will increase their prices. This accounts for the upward slope of the SAS curve.
You might also like to view...
In the United States, although people in different income groups pay different tax rates, every dollar earned by a specific individual is taxed at the same rate
Indicate whether the statement is true or false
Which of the following countries is not a member of The Group of Seven?
A. the United States B. China C. Germany D. Japan
Which of the following effects will not increase (i.e., shift to the right) the aggregate supply curve?
a. An appreciation of the domestic currency. b. An increase in the number of immigrants. c. An increase in the price of fuel. d. None of these answers is correct.
It is claimed that a secondary advantage of mutual funds is that
a. an investor can avoid investment charges and fees. b. they give ordinary people access to loanable funds for investing. c. they usually outperform stock market indexes. d. they give ordinary people access to the skills of professional money managers.